“It’s the economy, stupid!” may be a hark back to Bill Clinton’s presidency but the slogan can be expected to weigh on Barack Obama’s mind when he visits India and other Asian nations next month. As the US economy struggles to fully recover from the recession, there will likely be a mismatch between President Obama’s priorities and India’s expectations from his visit.
From all accounts, Mr Obama will be looking to shore up the support of Americans back home by focusing on the economy. With the unemployment rate not showing signs of much recovery, and the economy figuring high on voters’ agenda as America goes to mid-term polls on November 2, the success of his visit here will be measured against certain metrics such as whether it will help create more jobs for the American people, whether it will boost US exports and whether it will help to lift a sagging economy.
Consequently, the global economy and bilateral business relationships will be an important aspect of his tour here. The focus will be on three key areas, human development, economic activity, and science and technology, as was spelt out by US secretary of state Hillary Clinton a few months ago when she sought to answer the question about what’s next for the India-US bilateral ties.
The large US business delegation that will accompany Mr Obama sees India as a market for goods and services and it will be particularly keen to explore avenues of cooperation in education, health, agriculture, financial services, retail, insurance, defence and energy.
Raising the caps on foreign direct investment and increased market access also will be in its crosshairs.
In contrast, New Delhi’s wish list is preponderantly focused on political and strategic issues such as an endorsement of India’s candidacy for a permanent seat in the UNSC, lifting of export controls, counter-terrorism and security cooperation, and Washington’s attitude towards Pakistan, China, Afghanistan.